Rising fuel prices in Nigeria during the first half of 2026 forced households and businesses to sharply reduce their consumption of petrol, diesel, and cooking gas, according to a new industry report. The H1 2026 Downstream Industry Analysis Report, published by the Major Energy Marketers Association of Nigeria (MEMAN), revealed that petrol prices surged from N1,035 per litre in January to a peak of N1,596 in May, while daily petrol demand plummeted from about 60 million litres in January to as low as 46 million litres in May.
Petrol Prices and Demand Trends: A Direct Correlation
The report detailed a clear link between price movements and consumer behaviour. Petrol prices climbed steadily from N1,035 in January to N1,051 in February, then jumped to N1,289 in March, N1,533 in April, and peaked at N1,596 in May before easing to N1,300 in June. Daily petrol demand followed an inverse pattern: around 60-61 million litres in January, 58 million in February, a sharp drop to 48 million in March, a slight recovery to 51 million in April, and a fall to 46-47 million in May. When prices moderated in June, consumption edged back up to about 48 million litres.
MEMAN described this as evidence of "growing price sensitivity among consumers," noting that Nigerians adjusted their fuel use quickly in response to price changes. The report highlighted that the demand response was most pronounced during the peak price months, underscoring the economic strain on households and businesses.
Diesel and Cooking Gas: Similar Consumption Declines
Diesel (Automotive Gas Oil, AGO) prices also rose sharply, from N1,362 per litre in January to N1,420 in February, N1,648 in March, N2,475 in April, and a peak of N3,277 in May. Daily diesel consumption fell from about 20 million litres in February to 15.5-16 million litres in March, stabilising around 16 million litres through June.
Cooking gas (Liquefied Petroleum Gas, LPG) prices increased from N1,086 per kilogramme in January to N1,800 in May, before easing to N1,661 in June. Daily LPG consumption declined from nearly five kilotonnes in January to about 4.2 kilotonnes by June, reflecting significant cutbacks in household and commercial use.
Global Factors Driving Price Hikes
MEMAN attributed the price increases to elevated global crude oil costs, driven by geopolitical tensions in the Middle East and disruptions to shipping through the Strait of Hormuz. The association noted that while crude prices softened in June, they remained above January levels, keeping domestic fuel prices under pressure. This external dependence highlights the vulnerability of Nigeria's downstream sector to international market shocks.
MEMAN Calls for Policy Action
Beyond documenting the trends, MEMAN used the report to urge policymakers to maintain a competitive downstream sector by allowing fuel imports to complement local refining output. The association warned against long-term dependence on any single refinery and called for the creation of a National Strategic Stock to cushion the market against future supply disruptions. This recommendation comes amid ongoing efforts to boost local refining capacity, including the Dangote Refinery, but MEMAN stresses the need for a diversified supply strategy.
The report concluded that the first half of 2026 clearly demonstrated how quickly Nigerian consumers adjust their energy use when pump prices move, with effects felt across petrol, diesel, and cooking gas alike. The findings underscore the economic impact of fuel price volatility on ordinary Nigerians and the urgent need for sustainable energy policies.
Recent Cooking Gas Price Developments
In related news, Liquefied Petroleum Gas (LPG) dealers released fresh depot prices on Monday, August 3, with wholesale rates ranging between N1,005 and N1,050 per kilogramme. According to data from Petroleumprice.ng, Navgas quoted the lowest wholesale price at N1,005 per kilogramme, extending a decline in loading costs for cooking gas across Nigeria. This slight easing may offer some relief to consumers, though prices remain significantly higher than early 2026 levels.
